IESET.
Policies·jp_financial_revitalisation_act_1998

Japan Financial Revitalisation Act 1998

JPN·1998 1998·enacted 1998-10-16·LDP-Liberal-Komeitocandidate
movesfinancial deregulationsectoral subsidy

What the policy did

Financial Revitalisation Act passed 16 October 1998 creating the Financial Reconstruction Commission (FRC, active until January 2001), the Resolution and Collection Corporation (RCC), and the framework for bank nationalisation and capital injection. Expanded public-fund capacity to ¥60tn. Immediately used to nationalise the Long-Term Credit Bank of Japan (23 October 1998) and Nippon Credit Bank (13 December 1998). March 1999 ¥7.5tn capital injection into 15 major banks. Shifted bank-support regime from 1998 blanket model to asset-quality-conditioned framework.

Policy-content fingerprint — what this policy moved, on which axes

Per invariant 3, reforms are scored by what they did on each channel-separated axis, not by the party that enacted them. This fingerprint is how the policy-match engine finds historical analogues.

intended
financial deregulation
regulatory.financial_deregulation
Financial-sector regulation — banking separation, capital requirements, cross-border activity rules, derivatives oversight.
decreased · strong
looser financial regulation
Tighter supervision, conditional capital injection, asset-quality inspection regime.
sectoral subsidy
fiscal.sectoral_subsidy
Targeted industrial and sectoral subsidies (renewable energy, chip manufacturing, agriculture, green hydrogen, etc).
increased · strong
expanded sectoral subsidies
LTCB and NCB nationalisations; ¥7.5tn public-fund injection to 15 major banks.

Enacted by

Empirical evidence — linked hypotheses

Explicit links are curated by the author. Inferred links are hypotheses in the library that test the same axes this policy moved — the framework's answer to "what does the data say about a policy like this?".

The 2022-2026 wave of major-economy industrial-policy programmes — US IRA + CHIPS, EU Critical Raw Materials Act + Net-Zero Industry Act, EU Chips Act, Japan Green Transformation (GX, ¥150tn / ~$1tn announced), Korea K-Chips + Korean New Deal 2.0, China 14th Five-Year Plan + Made-in-China-2025-2.0 with semiconductors and clean energy as national-security frontier — represents the largest coordinated wave of industrial-policy spending in the post-1970s OECD record.
green_industrial_policy_global_chip_race_2022_2026inferred
viafiscal.sectoral_subsidyregulatory.financial_deregulation
INCONCLUSIVE_DATA_PENDING — insufficient observations after listwise deletion (20)
run pending
Major episodes of financial deregulation — the 1999 US Gramm-Leach- Bliley repeal of Glass-Steagall, the 1986 UK Financial Services Act ("Big Bang"), Chile's 1974-1981 banking liberalisation, Sweden's late-1980s credit-market liberalisation, and Japan's 1996-2001 Big Bang — are followed within 10 years by higher-than-baseline incidence of banking crises, measured by the Laeven-Valencia Systemic Banking Crisis Database, and by elevated credit-to-GDP gaps per BIS.
financial_deregulation_crisis_vulnerabilityinferred
viaregulatory.financial_deregulation
SUPPORTED — sign matches claim +, ATT=+0.04145, p=3.34e-07, N=302, treated_countries=8
supported
The 2022 European gas-price shock plus heterogeneous national policy responses (German Doppelwumms ~€200bn relief package, Spanish-Portuguese Iberian gas-price-cap mechanism, Italian energy-aid bridges, French EDF nationalisation + nuclear price cap) produced a divergent industrial- relocation pattern within Europe and across the Atlantic over 2022-2025.
energy_crisis_2022_european_industrial_relocationinferred
viafiscal.sectoral_subsidyregulatory.financial_deregulation
PARTIAL — ATT=+0.1438, p=0.583, N=94, treated_countries=14 (above α=0.10)
partial
The Inflation Reduction Act (IRA, signed August 2022) produced a measurable step-change in US clean-energy investment, manufacturing reshoring, and fiscal cost over 2022-2026 relative to a pre-IRA trajectory and to non-US comparators (EU, China, Japan, Korea).
ira_2022_clean_energy_investment_decompositioninferred
viafiscal.sectoral_subsidyregulatory.financial_deregulation
PARTIAL — coef=+1.688e+04, p=0.886 (above α=0.1); direction inconclusive
partial
Precautionary-principle-based regulation in the EU produces a three-order causal chain relative to the US regulatory baseline.
precautionary_regulation_innovation_productivity_gap_eu_usinferred
viaregulatory.financial_deregulationfiscal.sectoral_subsidy
PARTIAL — ATT=+8.614e+04, p=0, N=260, treated_countries=1; claim direction ambiguous
partial
China's strongest total factor productivity acceleration occurred during the WTO-accession period (2001-2008) linked to tariff reduction, foreign competition, and regulatory harmonisation, while the subsequent subsidy-heavy state-direction phase (post-2008, intensifying post-2015) is associated with weaker TFP growth and rising capital misallocation.
china_post_wto_market_opening_vs_subsidy_tfpinferred
viafiscal.sectoral_subsidyregulatory.financial_deregulation
SUPPORTED — shape=ITS, sign matches claim +, mean_gap=+0.1126, z=+3.9
supported
Brazil's Nova Indústria Brasil (NIB) 2024 industrial-policy plan targets six "missions" (sustainable agribusiness, health complex, infrastructure, digital transformation, defence/ bioeconomy, decarbonisation) with R$300bn of subsidised credit + procurement preferences.
lula3_industrial_policy_2023_2026_reshoring_outcomesinferred
viafiscal.sectoral_subsidyregulatory.financial_deregulation
INCONCLUSIVE_DATA_PENDING — no outcome variable loaded
run pending
Chinese state-owned enterprises in strategic sectors (steel, energy, telecoms) post-1978 grew faster than privatised peers in Eastern Europe through the 1990s-2010s, demonstrating that public ownership with planning can outperform market transition.
china_soe_vs_cee_privatised_growthinferred
viafiscal.sectoral_subsidyregulatory.financial_deregulation
INCONCLUSIVE_DATA_PENDING — treatment 'china_soe_strategic_sector_indicator' has no within-country variation under country fixed effects
run pending

Similar historical policies

Ranked by axis-fingerprint overlap with this policy. Direction match bolded — those are the closest historical analogues. Shape of the match is what drives policy-outcome comparison, not the country or party label.

References